Analyst: Hungary’s GDP could grow by 2-2.5% this year

Analysis

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Hungaryʼs GDP could slow to around 2-2.5% in 2016 despite growth-enhancing measures, Zoltán Török, senior analyst at Raiffeisen Bank said today, Hungarian news agency MTI reported.

The revamp of the home purchase subsidy system by the government could increase GDP by 0.3% a year in the medium term according to conservative estimates, while some say it could lift GDP by as much as 0.5%, said Török.

Inflation figures are rather weak: This year annual inflation could be around 1.5%.

Raiffeisen expects the National Bank of Hungary (MNB) to further lower its base rate to around 1% by the middle of the year.

For 2017-2018 analysts at the bank expect GDP growth to increase to around 3% annually.

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